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Bonds snapped two days of falls and rose marginally on Wednesday after a news report said the finance ministry may issue a new 10-year bond only after the budget is finalised, but investors refrained from adding larger positions ahead of the outcome of debt limit sale for foreign investors. Shortly after the auction outcome at 1200 GMT, sources said the auction was aggressively bid for R9,361 crore ($1.58 billion), above the R7,152 crore on offer. The cut-off was set at 4.8 basis points, sources said.

Earlier in the day, a news agency quoted a senior finance ministry official saying the government is likely to issue a new 10-year bond only after its borrowing plan is finalised, sending the 10-year yields down 4 basis points to 8.54% from 8.58% earlier.

For most of the session, yields were stuck in a range as traders were on the sidelines ahead of the unutilised debt limit auction for foreign institutional investors (FIIs).